R&D tax credits

Research and Development (R&D) tax reliefs, or R&D tax credits as they are also referred, are government tax reliefs rewarding UK companies for investing in innovation and can have a valuable impact on small and large businesses alike. The government has set aside billions of pounds for claims over the coming years and the definition of qualifying companies is wider than you might expect – and definitely not the preserve of the scientists in white coats.

Businesses spending money on creating or appreciably improving existing products, services or processes which incorporate or represent an increase in overall knowledge or capability in a field of science or technology could be eligible for a sizeable reduction in their Corporation Tax and / or a cash payment to reward their investment.  Relief for SME’s is currently equivalent to between 21.5p and 18.6p for every £1 of qualifying expenditure depending on profitability.